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Morgan Stanley CEO Says No Further Layoffs

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  • Description

    FBN’s Charlie Gasparino on his interview with Morgan Stanley CEO James Gorman.

  • Duration 5:39
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We had a big -- and that was thanks to Charlie Gasparino Morgan Stanley came out with numbers they did well the stock is up have a one and a quarter percent not bad at all.

For a -- that's -- a little bit of difficulty of course as far as news -- concern but Charlie was able in speaking at a very special interview with the CEO James Gorman.

To solve one of the great mysteries on Wall Street listened.

-- I -- -- that they questioned why you always get mad at me when I call you Jim.

Believe that we can get ninety of the answer yes I -- events that I'm one of ten children okay okay and all my Brothers -- Jim.

And all my sisters -- like -- something.

Even more affectionate.

My -- calls me giants and I do what my mother tells our.

-- other calls me Elizabeth Charlie gonna start calling me Elizabeth that was great interview my mother called -- -- -- -- -- -- Here -- see -- that's right here wasn't very affectionate.

I just wanna say congratulations on your 1000.

Appearance on the show and our families you look amazing down there and -- -- I'm gonna say.

I think it's -- we -- -- down here look we do wonderful anyway.

You know James Gorman.

Gave a fairly lengthy -- -- for two with us you know.

-- I -- spend a lot of time on today's numbers which are good you know the real story about Morgan Stanley is ramping forward.

What's the deal with a lot of issues affecting this -- including some over promising on the part of James Gorman to go -- some of the headlines we've made.

If you look checked the wires these were these and out -- based on the fox does network -- interview with.

With James Gorman CEO we're saying he's been CEO since at least 2009.

-- to -- notes Q3 2010.

He was named in 2000 takeover John -- in 2010.

Here's what he basically said.

Lot of speculation about -- accelerating their complete purchase of the Smith Barney brokerage -- remember they own 49% on the -- deal they cut.

Back in 2009 at the height of the financial crisis were Citigroup had to unload assets including its brokerage department you have the option to -- in chunks including.

A 14% -- this may there's been lots of talk inside Morgan Stanley now by an all that he basically too cold water on it he said and take an extraordinary.

Quote -- quote extraordinary event for them to buy it all.

In May be that is news -- that means that it's unlikely to happen and some would say probably never gonna happen he said in order for it to happen.

He would have to get a call from Citigroup offering to sell -- first.

You see set that bar very high as we understand -- Vikram Pandit the CEO of Citigroup has yet to Colin that may have changed the last 4420.

24 hours -- last couple hours following our interview and we -- -- at the Citigroup will find out about whether it's happened but it seems unlikely.

That they're gonna accelerate by all of it and highly likely based on those comments.

Some all other sort of news headlines he may -- member.

Big cost cutting measure late last year he says no further -- terms of layoffs is well.

No further layoffs in the picture according to go -- -- Gorman they've done most of their cost cutting.

You know there's an issue with his pay package remembered Vikram -- Gotten gotten whacked down by shareholders who data out of a vote it's a non -- vote but on the Dodd-Frank every shareholder.

They have all these firms have to take servers -- the shareholders whether they approve of the pay packages the compensation packages.

Of the CEO James Gorman took a big cut from last year I think was some like 24% cut.

He thinks that unlike candy way to shareholders disapprove the rejected his pay -- -- -- he's not he's gonna get through the shareholder.

Vote which is I guess we are one reason why took a 25% cut.

Some other things it's really just need.

He basically conceded he made a fairly big mistake.

When he said back in 2010 when he took over that you know he would be -- all these lofty profitability.

Sort of predictions and cost cutting predictions in terms of the brokerage business member this is a big thing.

Morgan Stanley's business model is based on this big brokers department that there assembly by -- the chunks or maybe all of Smith Barney he said it would produce.

Huge amounts of -- 40% profit margins that -- in -- basically said that was a big mistake by getting out he made a mistake on that so you know.

Took took -- like commandments and and basically says he should have done that I will point out this one and one of things analysts like.

In CEOs he's two under promise and over deliver.

He -- conceded that was a mistake and maybe that's one of the reasons that every reason one reason why Morgan Stanley shares in another up -- -- or something like 30% year to date Liz.

Thanks to you yeah you know what I saw James Gorman leaving it with a grain brown what I said was Charlie ticked up on -- said.

To be fine if you work get a big smile on his -- -- -- -- -- big guy any of those questions fairly well as you know as you know and right absolutely you know -- one of my favorite moments on this show you didn't have to do what we -- favorite moments with Warren -- and Paul Otellini and all these great CEOs but it.

It was when you did.

The one armed push up I know you're not a train seal you only perform when I'm -- person but we wanted to show our viewers that special day when you did it.

Because it was hysterical.

We have so much Kim hi sue in my words you are in better shape than most twenty year old Leno and I don't know any twenty year -- not.

I you know this I work out of the park you know these are the park -- -- might pull ups might push -- everywhere as -- -- -- right I will tell you there -- New York City recruits.

They can't do my work out.

New York city police recruits -- can't do my work out.

Cat and eliminate I don't know I don't know what that says about.

That they have the safety of New Yorkers difficult but right Iberia are right Charlie thank you so very much for joining us -- --

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